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Assignment One (1)

The document outlines the manufacturing costs for Kana Company, providing production data and costs for various units produced. It also requires the derivation of a linear regression equation to predict costs and includes instructions for preparing a cost statement based on stock and expenses for the year 2020. Additionally, it presents financial information from Bidco Ltd to prepare another cost statement.

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angieomar321
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4 views

Assignment One (1)

The document outlines the manufacturing costs for Kana Company, providing production data and costs for various units produced. It also requires the derivation of a linear regression equation to predict costs and includes instructions for preparing a cost statement based on stock and expenses for the year 2020. Additionally, it presents financial information from Bidco Ltd to prepare another cost statement.

Uploaded by

angieomar321
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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a)The following data relates too Kana Company. Manufacturing cost was as follows.

Unit Production
Produced Cost
100 600
120 720
140 810
160 960
190 1060
200 1220
210 1320
220 1460
180 940
160 870
140 800
150 820

Required: Using the linear regression method derive the equation which can be used to predict
cost

(10mks)

B) From the following information, prepare a cost statement.


Stock on 1st January 2020 (10 marks)
Shs
Raw materials 45,000
Work-in- progress 22,000
Stock on 31st December 2020
Raw materials 65,000
Work in progress 19,000
Purchase of raw materials 670,000
Carriage inward 25,000
Returns of raw material 15,000
Direct wages 280,000
Factory rent 60,000
Power 48,000
Depreciation of plant 35,000
Supervisors salary 55,000
Office salaries 70,000
Depreciation of office equipment 5,000
Salesmens salaries 68,000
Delivery vans expenses 27,000
Advertisement 12,000
c) The following information was extracted from the books of Bidco Ltd
Sh.

Raw materials 200,000

Direct labour 100,000

Factory rent 10,000

Factory power 20,000

Indirect wages 15,000

Administration expenses 8,000

Selling and distribution expenses 30,000

Profit 66%

Prepare a cost statement 10 marks

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